Tiffany Still Confused About How Liability Works; Appeals eBay Decision

from the let's-try-this-again dept

Last month a US court correctly pointed out that eBay was not liable for counterfeit products showing up on the auction site. That doesn't mean that it's legal to sell counterfeit products, just that eBay isn't liable for the counterfeits showing up there. Instead, it should be the person who actually lists the item that's liable. That makes perfect common sense. Except to Tiffany, apparently.

The company is now appealing the ruling, making some bizarre arguments in its own defense:

"If one were a flea market operator and you become aware that counterfeiting is going on with the individual sellers at the flea market, you have a duty to investigate it. Why is eBay any different from that analogy?"

Well, two things, actually. First, it's the individual seller in that situation that's liable, not the flea market operator, and much more importantly, eBay is quite different than a typical flea market in that it doesn't pre-vet any of the sellers. A traditional flea market involves the flea market operator finding sellers. eBay is just a platform where anyone can sell. That is, eBay has simply no knowledge of what anyone is selling on the site -- nor should it be required to. The law is pretty clear on this, so it's not at all clear what Tiffany thinks it's going to accomplish here other than to waste a lot of money on lawyers who seem to be giving the company really bad advice.

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US Courts Recognize That eBay Isn't Responsible For Auctions By Users

from the a-good-ruling dept

Unlike last month's awful ruling in a French court, costing eBay millions, a US court has correctly recognized that eBay should not be found responsible for auctions of counterfeit goods. This case involved Tiffany Co., who wanted eBay to be held liable for others selling fake Tiffany goods on eBay auctions. The court sided with eBay on every single charge, and smacked down Tiffany over and over again in the ruling. It noted that eBay is not responsible for the actions of its users, and Tiffany is wrong to suggest that eBay has the responsibility to monitor the auction site for infringing auctions. eBay does take down such counterfeit auctions when made aware of them, and that is all that the company is required to do. The court specifically points out that the Supreme Court had already rejected the idea of a "reasonable anticipation" standard that would have made eBay liable, even though Tiffany tries to suggest otherwise. The court also notes that eBay didn't infringe on Tiffany trademarks in mentioning Tiffany in advertisements for the site. This is an excellent overall ruling, and nearly the complete opposite of the terrible French ruling.

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Tiffany CEO Admits That It's Suing eBay Because It's Too Hard To Find Real Counterfeiters

from the lawsuits-don't-work-that-way dept

Three and a half years ago, famed jeweler Tiffany sued eBay because people were selling counterfeit Tiffany goods on the auction site. As we noted at the time, it doesn't make any sense at all to sue eBay, since it's not eBay who's doing anything wrong. Tiffany's CEO has now basically admitted that, but doesn't seem to mind. At a hearing in the lawsuit, CEO Michael Kowalski admitted that the firm was suing eBay because it was hard to find the actual sellers. That may make sense in the mind of a Tiffany exec, but the way laws work is that you don't get to sue the person or company who's easy to find just because those actually responsible are hard to find. When a robber holds up a Tiffany store, does Kowalski sue the maker of the getaway car, because the robber can't be found? The company does admit that it sues the individuals when they can be found, but the CEO refers to them as "phantasms" and claimed it made more sense to just focus on eBay, saying that the real fault is "the distribution network, not the seller." Next thing you know, Kowalski will be suing the internet itself. After all, it's "the network, not the seller."

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